2010_fisher_susan._abaf by Francesca Minguella

THE WINSTON CHURCHILL MEMORIAL TRUST OF AUSTRALIA

Report by â&#x20AC;&#x201C; Susan Fisher â&#x20AC;&#x201C; 2010 Churchill Fellow

Stimulating private sector support for the arts in a challenging economic environment

I understand that the Churchill Trust may publish this Report, either in hard copy or on the internet or both, and consent to such publication. I indemnify the Churchill Trust against any loss, costs or damage it may suffer arising out of any claim or proceedings made against the Trust in respect of or arising out of the publication of any Report submitted to the Trust and which the Trust places on a website for access over the internet. I also warrant that my Final Report is original and does not infringe the copyright of any person, or contain anything which is, or the incorporation of which into the Final Report is, actionable for defamation, a breach of any privacy law or obligation, breach of confidence, contempt of court, passing-off or contravention of any other private right or of any law.

Signed

Dated

Susan Fisher

14 Oct 2011

Contents Acknowledgements

Executive Summary

Program: List of Meetings

Introduction

Churchill Fellowship Research Themes

1. Extending arts advocacy

1 (a) Case Study: Americans for the Arts â&#x20AC;&#x201C; the pARTnership Movement 2. Managing business arts partnerships

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2 (a) Case Study: National Ballet School of Canada

2 (b) Case Study: Tate and Vodafone partnership

3. Smarter ways of working together

4. Encouraging philanthropy

4 (a) Case Study: Initiative for Sustainable Arts in America 5. Utilising new technology

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5 (a) Case Study: Fund it crowd funding

5 (b) Case Study: DonorsChoose.org crowd funding

6. Cultural entrepreneurship

6 (a) Case Study: CultureLabel

7. Future directions in funding

Conclusion

Recommendations

References

Appendix 1: About the Australia Business Arts Foundation (AbaF)

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Acknowledgements The purpose of this study was to research ways to encourage private sector support for the arts in a challenging economic environment. My Churchill Fellowship provided me the opportunity to travel to the United States, Canada, the United Kingdom and Ireland to meet with leading professionals working in this area. I wish to extend my thanks to the Winston Churchill Memorial Trust for granting me this wonderful opportunity for personal and professional development and the chance to develop valuable networks. My sincere appreciation to the many talented people I met during the course of my Fellowship. Thank you for the time you took out of your busy schedules for meetings and for sharing your work. I received many valuable insights that helped to shape my recommendations. I would like to warmly acknowledge my two referees Philip Bacon AM, and Jane Haley for their generous words in my Fellowship application. I thank my employer, the Australia Business Arts Foundation, for allowing me the time to embark on the study. Thanks also to Melanie Pitt for her considerable efforts whilst I was away, to Jill White for her encouragement and support, and to Kylie Davidson for her help in New York.

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Executive Summary Churchill Fellow: Sue Fisher, Director Queensland, Australia Business Arts Foundation sue.fisher@abaf.org.au +61 (7) 3211 5130

Stimulating private sector support for the arts in a challenging economic environment As a consequence of the economic downturn and cuts to government spending in the US, UK and Ireland, many not for profit arts organisations are experiencing challenges in securing sustainable income: creative approaches are required. The purpose of the Fellowship was to study best practice with preeminent international peak bodies and arts organisations in the US, Canada, England and Ireland. My objective in undertaking this study was to seek to uncover innovative and successful programs that could be applied in the Australian context. The key themes and promising strategies that emerged from this research include: Extending arts advocacy – promote the intrinsic value of the arts and advocate the benefits of partnering with the arts with messages that resonate in the current business climate Managing business arts partnerships – develop bespoke partnerships which respond cleverly to specific business objectives and seek opportunities for innovative mutual benefits Smarter ways of working together – build the capacity of arts managers, embrace collaboration within the arts, and leverage resources through matched funding programs Encouraging philanthropy – promote a culture of philanthropy, celebrate leadership, educate and cultivate donors, and develop better data to evaluate impact Utilising new technology – engage new audiences and supporters, and leverage crowd funding platforms with business partners Cultural entrepreneurship – encourage business to use the arts to engage their customers through transformative experiences that build brand authenticity and loyalty, develop commercial strategies for the arts and new opportunities for sustainable income generation Future directions in funding – investigate opportunities for capital to be applied in the not for profit sector to increase returns (social impact investment) and enable social enterprises Overall, the mechanisms used in Australia to stimulate private sector support for the arts compare favourably with those applied overseas, with the strategies and new approaches highlighted in this report representing opportunities to build on existing successes. Case studies explore in depth a number of the highlights and key meetings of the Fellowship. I intend to share my research and recommendations with colleagues and stakeholders across the arts, business and philanthropy sectors both in Queensland and nationally through the Australia Business Arts Foundation‟s networks. This report will be supplemented and expanded upon during presentations and discussions with various individuals, groups and organisations.

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Program – List of Meetings Los Angeles – May 2011 Joan Weinstein, Interim Director, The Getty Foundation

Dawn Starr Adelson, Senior Development Officer, Massachusetts Institute of Technology

Dan Levek, Director of Business Development, Trade and Investment Queensland

Toronto – June 2011

Rebel Neary, Regional Director California, American Australian Association

Jeff Melanson, Executive Director & Co-CEO, National Ballet School of Canada

New York – June 2011

Nichole Anderson, President & CEO, Business for the Arts Canada

Excellence Awards in Corporate Philanthropy 2011 Reception, Committee Encouraging Corporate Philanthropy (CECP)

London – June-July 2011

Will Maitland Weiss, Executive Director, Arts & Business Council of New York

Dr. Salvatore LaSpada, Chief Executive, Sarah Burton, Deputy Director, Institute for Philanthropy

Emily Peck, Director of Private Sector Initiatives, Americans for the Arts

Colin Tweedy, Chief Executive, Arts & Business UK

Edwin Torres, Associate Director, The Rockefeller Foundation

Simon Cronshaw, Co-founder, Peter Tullin, Co-founder, CultureLabel

Bradford K. Smith, President, Lawrence Mc Gill, Vice President for Research, Steven Lawrence, Director of Research, The Foundation Center

Camilla Fletcher, Philanthropy and Community Engagement, Bank of America Merrill Lynch

Frances Cassidy, President, American Australian Association

Rebecca Williams, Director of Development, Tate Britain

Summer Arts Soiree, American Australian Association, Galapagos Art Space

Observer for a day at Clore Leadership Residential Course, near Sevenoaks in Kent

Todd Bishop, Director, Exhibition Funding, Museum of Modern Art (MoMA)

Sue Hoyle, Director, Clore Leadership Programme

Adrian Ellis, Executive Director, Jazz at Lincoln Center

Joshua James, Funding and Contracts Manager, School for Social Entrepreneurs (SSE)

Risa Ward, Customer Relations Associate, Donors Choose

Dublin – July 2011

Courtney King Murphy, Manager Strategic Engagement, Committee Encouraging Corporate Philanthropy

Stuart McLaughlin, Chief Executive, Rowena Neville, Director of Marketing and PR, Andrew Hetherington, Project Director, Business to Arts, Ireland

Boston – June 2011

Seamus Mulconry, Executive Director, Philanthropy Ireland

Phil Buchanan, President, Center for Effective Philanthropy Jim Bildner, Senior Research Fellow, Hauser Center for Nonprofit Organisations at Harvard University

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Introduction The lingering effects of the Global Financial Crisis and economic downturn continue to have a significant impact in the US, UK and Ireland. The Canadian and Australian economies have fared better due to the resources boom and growth of China and other Asian markets. However, Australia is a two-speed economy and some sectors are struggling due to interest rate changes, a high dollar and subdued consumer sentiment. In this time of economic uncertainty, governments are facing pressure to curtail spending. In Australia, not for profit arts organisations derive their income from a number of sources including: government funding; earned income from ticket sales, bars and cafĂŠs, merchandising or gift shops; income from investments; and private sector support for the arts â&#x20AC;&#x201C; through corporate partnerships, philanthropy from trusts and foundations (corporate and private), and individual donors. Given the ever increasing demands on government funding, and the economic downturn, arts organisations face increasing pressure to generate income and source support from the private sector. In addition, consumers are limiting their discretionary spending which impacts on earned income. At the same time, businesses and foundations are facing challenges that impact on their ability to contribute to the arts. Many philanthropic foundations have faced a decline in endowments and have prioritised social welfare issues ahead of giving to the arts. Businesses are expecting a greater level of cost control and are taking a more rigorous approach to partnerships with an emphasis on marketing opportunities and performance. Concurrent to these economic factors, donor behaviour is changing; donors are becoming more strategic and expect measurable outcomes. Private sector support for the arts in Australia and overseas As the peak organisation promoting private sector support for the arts in Australia, the Australia Business Arts Foundation (AbaF) connects the arts, business and donors. (See Appendix 1 for further information on AbaF.) The annual AbaF survey of private sector support for the arts tracks the value of sponsorships and donations to Australian not for profit arts organisations. The survey includes small and medium sized arts organisations as well as major collecting institutions, festivals and performing arts companies. So far the arts sector has weathered the economic downturn quite well.

The 2011 report results are summarised as follows: Overall private sector support for the arts was $221 million in 2009-10, an increase of 4.25% from 2008-09. Income from giving or donations increased significantly to $123 million in 2009-10, up 10.6% from 2008-09.

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Business support declined by 2.7% to $98 million, the first negative growth since 2004-05. The proportion of total income for arts and cultural organisations derived from private sector support increased to 10.4% in 2009-10 from 9.3% in 2008-09. Private sector support as a percentage of arts organisations‟ income increased from 6.7% in 2000 to 10.4% in 2010.

As noted by Jane Haley, AbaF CEO: AbaF had expected a decrease in sponsorships in 2010 since business support for the arts tends to lag the general economic performance by 18-24 months. Australia's decrease of 2.7% was moderate compared to the 11% decrease in the UK over the same period.

With the role of government being much smaller in the US, arts organisations receive little government subsidy and have a long history of private support, assisted by tax laws that encourage individual philanthropy. In the US, 44% of the revenue of arts organisations is from earned income, while only about 13% of their income is from government. Private sector support amounts to 43% of the income of US arts organisations; and of that, foundations contributed 9%, corporations 3%, and individuals 31%.

In the UK, private support for the arts from business, individuals, and trusts and foundations accounts for around 15% of the total income for arts organisations. Government funding and earned income account for 53% and 32% respectively.

Aim of project The purpose of this Fellowship was to study best practice and innovation in business partnerships and philanthropy for the arts in the US, Canada, England and Ireland. Australia shares similar concerns to Canada, England and Ireland in terms of developing a culture of philanthropy and private sector support for the arts. While the US and Australia differ in their legal and financial systems, the strong and established culture of philanthropy in the US makes a study of their experience worthwhile. The project aimed to investigate ways in which programs to stimulate private support for the arts are developed and delivered and explore ideas which may be adapted to suit the Australian context. In addition, the project involved sharing successful strategies from Australia with overseas colleagues.

AbaF (Australia Business Arts Foundation). 2011. “2011 AbaF survey of private sector support for the arts.” Accessed August 17, 2011. http://www.abaf.org.au/news--research/research/2011-abaf-survey-of-private-sectorsupport-for-the-arts.html 2 Ibid. 3 National Endowment for the Arts, 2007, “How the United States Funds the Arts.” Accessed August 17, 2011. http://www.nea.gov/pub/how.pdf 4 Arts & Business, “Annual Review 2009/10.” P5. Accessed August 17, 2011. http://artsandbusiness.org.uk/media%20library/Files/About_us/ArtsandBusiness_AnnualReview_0910-2.pdf

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To understand the various influences and drivers of private sector support for the arts, meetings were conducted with a range of organisations. These included: organisations similar to AbaF that facilitate business arts relationships Arts & Business Council of New York, Business for the Arts (Canada), Arts & Business (UK), Business to Arts (Ireland) world-class arts institutions Museum of Modern Art (MoMA), Jazz at Lincoln Center, National Ballet School of Canada, Tate Galleries prestigious foundations Getty Foundation, Rockefeller Foundation leading training organisations Clore Leadership, Institute for Philanthropy, School for Social Entrepreneurs business membership organisations with a philanthropic focus Committee Encouraging Corporate Philanthropy (CECP), American Australian Association crowd funding organisations DonorsChoose, Fund it cultural entrepreneurs CultureLabel

A number of key themes emerged from these meetings as outlined below: 1. Extending arts advocacy 2. Managing business arts partnerships 3. Smarter ways of working together 4. Encouraging philanthropy 5. Utilising new technology 6. Cultural entrepreneurship 7. Future directions in funding Finally, the report provides recommendations which may be applied in the Australian context.

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Churchill Fellowship Research Themes 1. Extending Arts Advocacy In the US, philanthropic, corporate and government bodies have realigned their priorities to respond to the changing financial and social environment. Since the 2008 recession, large corporations in the US have re-evaluated and refocussed their approach to seek partnerships that will have beneficial flow-on effects for their operations rather than simply receiving 5

recognition for corporate social responsibility. Philanthropic foundations have faced a significant decline in endowments and increased pressure to prioritise social welfare issues, such as health and education, over activities such as the arts. One response to this new challenging financial environment is for the arts to better articulate their importance and value, not just to government or business, but to the whole community.

It is believed that the arts sector needs to become more proficient in demonstrating the broad economic and social outcomes they generate. These outcomes include both the instrumental benefits (such as contributing to economic growth, improving academic performance, encouraging social interaction, enhancing community identity, generating employment and spending, and attracting a high-quality workforce to a city) and intrinsic benefits (such as aesthetic pleasure, and providing stimulation and meaning). While the intrinsic benefits are important to communicate they are difficult to measure and therefore less suited to the outcome-oriented, quantitative approach of much government policy at present.

Many are of the opinion that this overemphasis on instrumental benefits in government policy undervalues the arts and fails to provide a sound basis for decisions relating to funding. According to the Foundation Center, contemporary thinking is swinging back to the intrinsic value of the arts, and new ways of talking about the value of the arts are emerging. Professor Daniel Kahneman at Princeton University, a founder of behavioural economics, is looking at how the arts affect happiness and wellbeing in his research on hedonic psychology. US and Irish agencies are currently undertaking initiatives promoting the intrinsic value of the arts to the wider community: for example, the pARTnership Movement campaign (see case 8

study below), and publications promoting the value of culture and the arts. This complements their activities promoting the benefits of partnering with the arts to business. Business to Arts Ireland sends a powerful message to prospective business partners based on their role as „citizens‟ of the country that they should play an active role in making the city they operate in a better place. Canada has had great success building business support for the arts over the last 20 years (private sector support for the arts has grown at a rate more

Meeting with Bradford K. Smith, President, Lawrence Mc Gill, Vice President for Research, and Steven Lawrence, Director of Research, Foundation Center. 6 Meeting with Rebecca Williams, Director of Development, Tate Britain. 7 Rand Corporation, “Reframing the Debate About the Value of the Arts.” Rand Corporation Research Brief, Accessed 16 September 2011. http://www.rand.org/pubs/research_briefs/RB9106/index1.html 8 Business to Arts and Temple-Morris, Boz. (n.d.) “Conversations about Culture.”

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than double that of government support and earned revenue between 1992 and 2009); this success may be partly due to the greater importance of the arts to their national identity.

Not only is it important to elevate the value of the arts in society, those in the sector must continue to evolve their argument to business about the benefits of working with the arts. 1 (a) Case Study: Americans for the Arts – the pARTnership Movement Americans for the Arts, a national not for profit organisation advancing the arts in the US, is commencing a new and broad ranging public relations and advocacy campaign in late 2011, called the pARTnership Movement. The purpose of this campaign is to inform business leaders about how partnering with the arts builds their competitive advantage. The campaign will advocate business examples of how arts partnerships are being used as a key way to enhance the critical thinking and creative skills of the corporate workforce and help businesses achieve other goals including recruitment and team building. The target audience is decision makers within business including “C-suite” (the most important senior executives in US business, chief executives and heads of finance and information), Human Resources, Marketing and Corporate Giving professionals. The key strategies of the pARTnership Movement include: 1.

A new website, www.partnershipmovement.org, provides resources for business about arts partnerships and examples of businesses that have used the arts to help spur workforce development and competitive advantage. The site will also provide action steps business leaders can take to partner with the arts on a national and local level.

A book and e-book that demonstrates how the arts can build critical thinking and provide case studies from businesses that have successfully been partnering with the arts.

An advertising campaign (print and web) with the tag line, “Inspired people bring creativity to work” that raises visibility about the pARTnership Movement in core business publications.

Workshops and lectures at key business conferences including The Conference Board, US Chamber and other strategic alliances to reach business leaders about the value of partnering with the arts.

Articles about the pARTnership Movement and how the arts advances business goals in newspapers, business publications and online.

Technical assistance and training for local arts organisations. This technical program will build on the base of Americans for the Arts‟ private sector network of Business Committees for the Arts, Arts & Business Councils and United Arts Funds. It will be designed to prepare arts organisations to partner with business in a new way, focusing on building creativity and workforce development. Deliverables will include quarterly conference calls, webinars on topics including employee volunteering, arts based training in the workplace as well as professional development and peer group sessions at the annual Americans for the Art convention and National Arts Marketing Project 10

conference.

City of Toronto Economic Development Committee and Toronto City Council. May, 2011. “Creative Capital Gains: An Action Plan for Toronto.” p12. 10 Meeting with Emily Peck, Director of Private Sector Initiatives, Americans for the Arts, and Will Maitland Weiss, Executive Director, Arts & Business Council of New York.

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2. Managing business arts partnerships Private sector support is a significant component of income for many arts organisations and contributes to the sustainability of the arts and cultural sector. However, businesses in the US are currently seeking to control costs and are taking a more rigorous approach to partnerships, with an emphasis on measurement and marketing objectives, rather than corporate social responsibility. There is a very systematic approach to corporate partnerships which is more pronounced in the US because of the tension between making a profit and supporting the arts – the incentive to do something has to be financial. Confidence, pitching, networking and selling are 11

imperative skills for an arts manager. Creative engagement is vital to arts partnerships and „US businesses can bristle when the relationship is called a sponsorship‟.

It is widely acknowledged that a successful partnership with an arts organisation can help a business to: enhance brand awareness and reputation provide unique experiences for clients, staff and customers build employee and community engagement 13

strengthen links with government and other business networks

There are a number of strategies that arts organisations in the countries visited take to articulating the benefits they offer to a potential business partner. Different businesses emphasise different benefits; this is driven by their objectives and the market in which they operate. Bank of America Merrill Lynch is one of the biggest corporate supporters of the arts globally, supporting mainly flagship arts institutions. The main drivers for their arts partnerships are corporate reputation, prestige, client entertainment, employee engagement, and being perceived as a leader in business. Their focus is on impact: „is it going to change lives, like 14

programs which may involve arts and children at risk‟.

While always taking a bespoke approach to negotiating business partnerships and benefits for exchange, the Museum of Modern Art (MoMA) revised their pitch template following input from a banking partner. The template first page now covers „the where, what, when, how, how much does it cost for naming rights etc, while the second page covers demographics, benefits and images‟.

The prestigious arts organisations visited during the Fellowship were selected because of their success in corporate partnerships and fundraising. As a summary of their experience

Meeting with Dan Levek, Director of Business Development, Trade and Investment Queensland. Meeting with Joan Weinstein, Interim Director, Getty Foundation. 13 Australia Business Arts Foundation (AbaF) and Australia Council for the Arts, 2010, Arts and business: partnerships that work. 14 Meeting with Camilla Fletcher, Philanthropy and Community Engagement, Bank of America Merrill Lynch. 15 Meeting with Todd Bishop, Director, Exhibition Funding, Museum of Modern Art (MoMA). 12

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developing business arts partnerships, the following list is not intended as a how-to-guide to business arts partnerships; rather it covers tips, strategies and concerns. Some tips that are „best practice‟ for arts organisations include: Build relationships and networks, and if a prospective sponsor is interested, you must discuss and negotiate in person. It is a process of educating your partner. Know yourself. What is it that you do that brings people in? What do you have to sell that is commercially attractive? You must look hard at what you are and who you match with. Understand what business is looking for and what their key objectives are. There is a need to innovate and offer something creative and unique to business. The biggest advantage of the arts is their ability to take risks in a risk aware (not risk averse) way. Bespoke partnerships are essential. „Off the rack‟ partnerships better suit a corporate members program. Business development work in the arts is about face to face selling. Staff need to be positive, enthusiastic, and fun. Have fewer but better relationships, be excellent partners and communicate frequently, you want the corporation to have the best experience. A big challenge is that what a corporate wants to do is often additional to the arts organisation‟s core business. The arts organisation needs to „find the sweet spot and the spark for both parties‟. Be clear about your organisation‟s limitations with the partnership and where there is flexibility to leverage opportunities. Be empowered to walk away from a deal. A business partnership cannot influence curatorial and artistic decisions as the arts organisation‟s integrity diminishes. If a business prospect indicates they are freezing sponsorships, then that should not be the end of the story. The arts organisation could suggest doing something the following year or partnering on a particular project and paying next year. For example, lower the price this year and give more next year – try to make it work. The higher profile your arts brand, the less you have to work to get money. Build your own brand so that the logo on a poster is worth more and more. Corporate partnerships for large arts institutions involve complex substantive marketing deals and the arts organisation must embrace servicing them properly.

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In addition to the above accepted practice, there were some new approaches suggested: Use the distribution channels of your business partner to distribute your content and marketing to new and broad markets (i.e. Jazz at the Lincoln Center distributed CDs to the guests of their hotel partner) MoMA believes there is a need for seminars for business people. We need to teach corporations how to develop stronger partnerships with the arts, and explain the many opportunities that different artforms can offer. Give them a „taste of the arts‟. Follow up with each company separately, with a pitch of „let me help you increase sales and increase your profile‟. Sue Hoyle, Clore Leadership, suggested the corporate sector could invite senior staff from arts organisations to serve on business boards: this serves dual aims of embedding creativity in business and broadening networks for the arts. 2 (a) Case Study: National Ballet School of Canada Canada's National Ballet School (NBS) is 52 years old and an international leader in ballet training. Attracting students from Canada and internationally, NBS is the only ballet school in North America to provide elite dance training, academic instruction and residential care on the same campus.

In 2006, the NBS appointed Jeff Melanson as Executive Director and co-CEO. A charismatic artist who trained as an opera singer and also holds an MBA in Finance, Marketing and Strategy, Jeff is a dynamic and visionary leader committed to innovation, outreach and growth. At the NBS his innovative marketing and fundraising initiatives eliminated a major deficit, increased revenue from CAD$13 million to CAD$20 million, and grew the endowment 17

from CAD$8 million to CAD$32 million - all during a recession. The reliance on government funding has decreased from 40% to 30% of the NBS‟s overall budget. At the same time, he built a high performing administrative team, created new strategic partnerships with many arts and entertainment organisations (such as, So You Think You Can Dance Canada), and lobbied government to recognise the benefits of the arts. His core message is that artists and arts organisations need government support, but they must also become more entrepreneurial and work harder at finding new sources of funding. Jeff believes that the key to sustainability is in identifying and cultivating potential profit centres. A group of eight MBA students augmenting the ballet school's business development team are working on mobile and online projects, and new product and partnership development. Digital media is a priority, both for entertainment and education, and offers opportunities to earn revenue from potential partners seeking content. One student is working to expand the e–commerce component of the „Shoe Room‟, the NBS‟s retail dance equipment store, through hundreds of smaller dance studios across Canada.

By offering a centralised

online resource, the NBS has established its position and brand in the market, while smaller 16

Canada‟s National Ballet School Website, About Us, Accessed September 3, 2011, http://www.nbsenb.ca/about/default.aspx 17 Timm, Jordan, April 7, 2011. “Arts Dance for Your Dinner” CanadianBusiness.com, Accessed May 6, 2011. http://www.canadianbusiness.com/article/17057--arts-dance-for-your-dinner 18 Ibid. p2.

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dance schools can still offer their customers a wide range of product options and receive a percentage of sales without holding costly inventory. Jeff Melanson shared his experience and some suggestions about seeking business partners: In the past, pitches were driven by need. Now NBS focuses on the distinctive things they do and their aspirational goals. What are our big dreams? How can a partner help us transform and take the next step? Supporting a specific project is not an „ongoing sinkhole‟. If a business says „yes‟ to a meeting, then they know you are coming for money. It‟s a problem if you over-anticipate corporate interest and go in to a meeting too formed in terms of what you are expecting. Who you are, what you want, and your strategic plan needs to be clear and organisations will gravitate to an aspect of your work that resonates with them. A personal approach works best, the prospective business partner then becomes a joint architect in the proposal. There is not just one person doing business development at the NBS, Jeff has a talented team and great development ideas come from all through the organisation. There is no easy solution. Jeff did 170 pitches between June and December last year, that was two or three personal one-on-one meetings per day. Fifty percent of people Jeff approached had shown interest in NBS and had supported the organisation in the past. The development team also researched those who had made a donation to another arts organisation by reading the paper and then made cold calls. There was maybe a 10% success rate for the meetings, which may go up to 20% in time. Look at success as sharing the arts organisation‟s story rather than simply getting funding. Often it may not be until three months later when you get a follow up from business. There are time lags inherent in business development work – „it‟s like seed planting – it may take two years to get to the point where something comes from it‟. Arts organisations need to aim for good business press, not just stories in arts pages. Business people flick through the arts section in the newspaper rather than reading it in detail. The NBS see themselves as stewards for the arts community – all the pitches and discussions may make it easier for other arts organisations to open doors.

Meeting with Jeff Melanson, Executive Director & Co-CEO, National Ballet School of Canada.

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2 (b) Case Study: Tate and Vodafone partnership Tate is a family of four galleries housing collections of British art and international modern art. Tate's mission is to promote „public knowledge, understanding and enjoyment of British, modern and contemporary art by facilitating extraordinary experiences between people and art through the collection, and an inspiring program in and well beyond our galleries‟.

Tate is the first major gallery in the UK to establish a distinct brand appeal, gaining a great deal of international currency following the opening of the Tate Modern. The Tate brand is entrepreneurial, creative, young and forward thinking. Tate agrees with the prevailing thinking that in this financially challenging environment, bespoke partnerships which respond cleverly to a corporate partner‟s specific business objectives are essential. “It is about thinking creatively about what unique thing you can bring to a business partner, you need to understand what the leverage opportunities are.”

Tate and Vodafone recently announced a new partnership to develop mobile and online technologies for Tate‟s galleries and website. The Tate‟s website is visited by over 18 million people per year. Several projects will be launched in the coming year to enhance its online interfaces. The first was “Tate Debates”, a smart-phone app consisting of an online discussion on the museum‟s blog. Visitors can share their opinions on a specific weekly topic. The first question asked what people want from mobile apps in galleries and museums. Future topics will cover a range of issues relating to the visual arts, such as art education, design and architecture, and the history of art collections. This interactive forum is designed to encourage more public engagement in art as well as deepening Tate‟s relationship with its online communities, which already include a network of over 263,000 Facebook fans and 392,000 Twitter followers.

As the partnership progresses,

Vodafone‟s expertise will allow Tate to continue to find innovative ways to use mobile devices and apps within the gallery. The partnership meets mutual objectives around community outreach and showcasing new technologies. It provides Tate with access to the community of Vodafone customers. There is scope for technical support for Tate, research and development, and access to Vodafone‟s mobile phone donation service, JustTextGiving. JustTextGiving is a new free service by Vodafone in partnership with JustGiving that enables not for profit organisations in the UK to collect donations by text. Charities of every size are now able to receive text donations by using a unique, personalised text code. There are no set-up or running costs for charities, no network charges for people making donations and all money raised goes directly to the charity.

This initiative has been successful for disaster

relief and education charities and could be examined for its application to the arts. In a challenging economic climate, donating by text is speedy, simple, and spontaneous, and has potential to engage with the next generation of donors. 20

Tate Website, Accessed September 10, 2011. http://www.tate.org.uk/about/ourpriorities/ Meeting with Rebecca Williams, Director of Development, Tate Britain. 22 Tate, 2011. “Tate and Vodafone begin new partnership by launching Tate Debates”, Press release, 25 July 2011. http://www.tate.org.uk/about/pressoffice/pressreleases/2011/24455.htm 23 Vodafone UK Website, Accessed September 17, 2011. http://www.vodafone.co.uk/vodafone-uk/about-us/just-textgiving/just-text-giving-for-charities/ 21

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3. Smarter ways of working together Building capacity for the arts Training to strengthen leadership, secure partnerships and donations, and develop business skills is important capacity building for arts managers. For example, the Clore Leadership Programme in the UK is well-recognised for excellent professional training and personal development in the cultural sector. AbaF‟s „sister‟ organisations in the UK, Canada, Ireland and the US (Arts & Business UK, Business for the Arts Canada, Business to Arts Ireland, Arts & Business Council of New York), each conduct workshops and seminars on connecting with business and donors and building business skills. Through practical training and seminars these organisations (and AbaF in Australia) support the ability of organisations to achieve their missions. Similarly, many of these peak organisations, like AbaF, conduct programs to connect skilled business volunteers with arts organisations to provide their experience as a board member or to give pro bono advice on specific projects (such as strategic planning, HR, IT audits, and legal issues). There is an emerging recognition of the importance of a sales based approach to training on business arts partnerships. Business to Arts Ireland has established New Stream which includes five individual streams of activity that provide subsidised access to training, strategy development and information, while encouraging greater collaboration within the sector through Development Managers‟ Forums (including those working in partnerships as well as fundraising). Tom Suddes from the US has been engaged by Business to Arts Ireland to run workshops using his „For Impact‟ method, which is based on sales training and simplifying the 24

message.

He believes that nothing happens unless you are out selling your vision, your

impact, your message, your ideas, and your return on investment. Those working in the not for profit sector are deeply committed to their cause and organisation, yet few of them have been trained in sales.

The focus on a sales method and simplified pitching, supported by

follow-up and coaching, appears to already be showing benefits. In just over a year since its start, and 6 months since fundraising training was completed, 28 participating organisations 26 have directly attributed over €1 million in income to the New Stream program. Embrace Collaboration Another key theme discussed in meetings in the UK and US is that the arts should take more of a consortium approach, with arts organisations of different sizes working together to increase the resources for their sector. There is the sense that organisations should take responsibility beyond themselves – connecting and joining up art organisations. The largest organisations have the resources to take care of a corporate partner as well as the ability to reach elite audiences. There is an expectation that the largest arts organisations should play a role in delivering for the sector, in being more inclusive to benefit small to medium arts organisations when they attract corporate support. The Getty Foundation with its Pacific

For Impact Website, Accessed September 17, 2011. http://www.forimpact.org/ Suddes, Tom .2007, March 14. “You‟re in Sales…Get Over It.” Accessed September 24, 2011. http://www.forimpact.org/2007/03/you_are_in_sales_get_over_it.php?from=side 26 Business to Arts, 2010. “New Stream Evaluation 2009/10.” Accessed September 24, 2011. http://www.businesstoarts.ie/images/uploads/New_Stream_Review_2009-10_Year_One.pdf 25

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Standard Time project has taken this consortium approach to partnerships supporting a range of smaller museums in the region.

The Arts & Business Council of New York suggests that this approach could go further. Flagship arts organisations could play a leadership role by mentoring others in the arts sector, enhancing relationships between businesses and the arts, growing the stature of the arts in the wider community, and recommending other arts partners to business. While the flagship arts organisations may give away some expertise, the Arts & Business Council suggests they 28

will gain in the long-term.

The Rockefeller Foundation proposed that in these difficult economic times, the arts can make an overall argument for support in terms of other issues, for example, education or access for children. Arts considerations can be integrated into housing and urban development, transport, sustainability, local food, applied design and creativity, climate issues 29

and the environment. In one example, the Earth Institute at Columbia University and the Center for Creative Research at NYU are working together with an investigative theatre company, The Civilians, to develop a work on climate change. Collaborations are more likely to receive funding as the Foundation is able to support more organisations and be more strategic in its giving. Leveraging Funding Matched funding programs which effectively double the contribution of the business partner (similar to AbaF‟s Premier‟s Arts Partnership Funds), are well received and very successful in the UK and Canada. Business for the Arts Canada has an interesting program, artsVest, where the matched funds 30

are available in regional areas and tied to a training program for arts organisations. The process is competitive. Local councils in select communities are invited to submit proposals to have the program in their area and are assessed on the basis of their cultural plan; the number, capacity and size of local non-profit cultural organisations; the strength of support from the local mayor; and the strength of support from the Chamber of Commerce and business community. Once successful, the local council must ensure that the arts organisations establish partnerships with business to gain access to the fund, so it works as an incentive.

Getty Website. “About the Getty and Pacific Standard Time.” Accessed September 10, 2011. http://www.getty.edu/pacificstandardtime/about/ 28 Meeting with Will Maitland Weiss, Executive Director, Arts & Business Council of New York. 29 Meeting with Edwin Torres, Associate Director, The Rockefeller Foundation 30 Business for the Arts Website. “artsVest.” Accessed September 17, 2011. http://www.businessforthearts.org/programs/artsvest/

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4. Encouraging Philanthropy Recent Philanthropy Australia research indicates that Australians give slightly less than in the UK and Canada, and significantly less than in the US. The data shows that while overall giving in Australia has increased steadily over the past decade, giving from very wealthy or high net worth individuals has failed to increase at the same rate as their 37% increase in mean household income; and their tax deductible donations, as a proportion of income, are only marginally higher than those of lower income Australians.

One of the reasons wealthy individuals in Australia are not as generous compared with many international counterparts may be due to the different social welfare and tax structures, and the perceived role of government in addressing socio-economic and environmental issues and promoting cultural participation. Interestingly in 2009-10, income from philanthropy for Australian arts organisations increased by 10.6% on the previous year.

Given the recent discussion concerning the need for a

„culture change‟ in philanthropy in Australia, there is potential for further growth in individual giving to the arts in Australia. Similarly, Arts & Business UK noted that the growth area is in individual philanthropy in the UK rather than business partnerships. Resources in arts organisations Sectors outside the arts, such as the university sector, have many more staff and resources devoted to fundraising, while most arts managers are expected to be a „jack of all trades‟, particularly in small to medium arts organisations. Many small to medium arts organisations are often under-resourced and struggle to identify and build relationships with donors. Arts organisations are at a disadvantage compared to universities who build strong relationships with their students which can translate into financial support from a dedicated alumni community.

However the social and networking opportunities the arts can offer to donors

are seen as a real advantage over other sectors. Advocacy Overseas, various strategies have been used to promote philanthropy with the ultimate aim of stimulating planned, strategic giving from wealthy or high net worth individuals. Philanthropy Ireland aims to create a business case for philanthropy and use that to build the environment and „then go out and sell it‟. Philanthropy Ireland‟s strategies to achieve their mission include unleashing potential (such as explaining that philanthropy is not new to Ireland but a deeply embedded and proud tradition), advocacy, collaboration and leadership. What distinguishes philanthropic giving from more spontaneous „once-off‟ charitable donations is that the money is given with a degree of reflection, a clear purpose and a sustained personal interest in the cause being supported.

Philanthropy Australia, 2011. “Strategies for Increasing High Net Worth and Ultra High Net Worth Giving - Final Report.” Accessed September 17, 2011. http://philanthropywiki.org.au/index.php/Strategies_for_Increasing_High_Net_Worth_and_Ultra_High_Net_Worth_Giv ing_-_Final_Report 32 AbaF survey of private sector support for the arts 2011, op.cit. 33 Meeting with Dawn Starr Adelson, Senior Development Officer, Massachusetts Institute of Technology. 34 Philanthropy Ireland Website. Accessed September 17, 2011. http://philanthropy.ie/

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In Ireland, the exporting sectors and multinationals are doing well, but the recession has hit domestic business. The arts are seen a means of re-building Ireland‟s brand - both in Europe and internationally. Philanthropists „won‟t start giving until they think they won‟t need the money themselves and with so much uncertainty in the European economy they don‟t know if they‟ve hit the bottom yet‟.

Particularly in the US, donors are becoming more hands-on, and expect a business-like approach and measurable outcomes from not for profit organisations. Information, evaluation and impact Compared with Australia, there is extensive research and comparative data available in the US on philanthropy in general and on foundations that support the arts – this makes it easier for fundraisers across all sectors, including the arts, to make informed decisions about prospects, trends in the sector, and effective allocation of philanthropic resources. The US Foundation Center is the leading source of information about philanthropy worldwide. Through the most comprehensive database on US (and increasingly global) grantmakers and their grants, as well as data analysis, and training workshops, the Foundation Center provides a knowledge bank for the not for profit sector, enhancing their professionalism and effectiveness. The Foundation Center has just commenced research on the sustainability of the arts in the US with Harvard University‟s Hauser Center. (See case study below.) In the US foundations and boards want metrics and measurable, immediate results: some believe this trend has gone too far and now there is little tolerance for risk.

US-based Center for Effective Philanthropy (CEP) has a mission to provide data and create insight so philanthropic funders can better define, assess and improve their effectiveness – and as a result, their intended impact.

CEP notes that performance assessment remains a

high priority for foundations and while foundations are using a broader spread of information to understand their effectiveness, much progress still remains to be made. In theory, the ideal way to assess performance is to calculate the total social benefit achieved in relation to the resources expended, but putting this model into practice is difficult at best. Often, the complexity of social phenomena renders it virtually impossible to prove a causal connection between the foundation’s grant and the social outcome. Furthermore, although the social benefit of some grants and programs are easily quantifiable in dollars, many objectives — such as preserving 38 biodiversity or promoting civic engagement — are not. Many organisations are influencing philanthropists to work in a more data-driven way. However, there is a consensus that more research is needed to understand the links between performance measures and impact or social benefit.

Meeting with Seamus Mulconry, Executive Director, Philanthropy Ireland. Meeting with Joan Weinstein, Interim Director, The Getty Foundation. Center for Effective Philanthropy Website. “About CEP.” Accessed September 3, 2011. http://www.effectivephilanthropy.org/index.php?page=about-cep 38 Center for Effective Philanthropy, 2011. “The State of Foundation Performance Assessment: A Survey of Foundation CEOs.”p2. Accessed September 17, 2011. http://www.effectivephilanthropy.org/assets/pdfs/PerformanceAssessmentFinal.pdf 36 37

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The Committee Encouraging Corporate Philanthropy (CECP), based in New York, is an international forum of business CEOs and Chairs with a mission to lead the business community in raising the level and quality of corporate philanthropy. (Note: the US definition of corporate philanthropy has some overlap with Australian corporate partnerships.) Members can create custom reports from an online benchmarking tool, and access networking programs, research, and opportunities for sharing best-practice. A recent CECP report, Measuring the Value of Corporate Philanthropy: Social impact, business benefits and 39

investor returns , aims to assist giving professionals by reviewing the strengths and limitations of various measurement studies and models. In addition to promoting discipline in corporate giving, the CECP actively champions CEO engagement through media outreach. 4 (a) Case Study: Initiative for Sustainable Arts in America The Hauser Center for Not for Profit Organisations at Harvard University recently launched a three-year study, “The Initiative for Sustainable Arts in America” to assess the sustainability of arts institutions and strengthen arts infrastructure in seven cities across the US. The research aims to facilitate significant changes both in public policy and in the decisions of arts institutions and donors. According to Jim Bildner, Senior Research Fellow, the Hauser Center, it has become increasingly easy for policy makers to devalue the role arts institutions play in creating the nation‟s sense of identity and culture following the recession in the US.

Both performing arts

and visual arts institutions are confronting systemic challenges to their financial and capital bases, as well as declines in traditional audiences. (Interestingly, there has been a great 41

increase in the number of arts organisations in the US in the last 15 years. ) New technology and media tools allow participation in forms not contemplated a decade ago. While the largest arts institutions are historically place-specific and „large bricks and mortar capital investments‟, audience demographics are changing the concept of participation from a placebased strategy to a consumer-centric pattern.

The arts have changed. The divide between high arts, popular culture and the creative industries has now largely disappeared. The arts are broader, more innovative and boundaryless. With new technology the means of production are now in the hands of everybody and the arts are growing in a thousand different places. The Hauser Center‟s three-year study will investigate the characteristics of new and innovative arts organisations that have flourished in the last few years. The research team will work with the Foundation Center to investigate long-term trends in funding streams and changes in the patterns of funding for arts institutions.

Lim, Terence. 2010. “Measuring the Value of Corporate Philanthropy: Social impact, business benefits and investor returns.” Committee Encouraging Corporate Philanthropy. 40 Meeting with Jim Bildner, Senior Research Fellow, Hauser Center for Nonprofit Organisations at Harvard University. 41 The Associated Press. 2010. “Arts industry faces slump after big growth.” January 20, 2010. Accessed September 12, 2011. http://today.msnbc.msn.com/id/34952620/ns/today-entertainment/t/arts-industry-faces-slump-after-biggrowth/ 42 Harvard Kennedy School Website. “The Initiative For Sustainable Arts in America.” Accessed August 17, 2011. http://www.hks.harvard.edu/hauser/engage/artsculturemedia/for-sustainable-arts-in-america/

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The study will focus on questions about audience, scale and capitalisation: How many large arts institutions can be supported in individual cities? How have patterns of audience participation changed within these cities? How are earned revenue streams changing when people are downloading content for free? How are arts organisations systematically „miscapitalised‟? And will new forms of innovative capital succeed in bringing about meaningful changes in these institutions? What are the implications for the sustainability of these institutions and their 43 relevance to their communities?

There is no central planning process in arts philanthropy in US which makes it very difficult to direct the money strategically. Major donors are funding local institutions even though it is not likely to create a sustainable model. The impact of mercurial donors raises questions around cultural identity, minority expression, experimental arts and risk. The research will question the existing order in the US. The government funding model present in countries other than the US offers some oversight and strategic allocation of resources that is arguably lacking in the context of individual philanthropists as the major source of funding for the arts. There is no magic wand, in countries where the arts have Federal Government support it leads to a more rational system, you are not at the mercy of billionaires who 44 want another ballet.

Educating donors The LA Arts Funders group (which includes the Getty Foundation and other smaller family foundations in Los Angeles) meets each month to discuss different issues in strategic arts philanthropy. The group has helped to professionalise family foundations, and offered capacity building and operational support. The meetings usually consist of a 45 minute presentation, followed by a 1 hour discussion and catch up. Meetings occasionally include wealth management advisors. Working from offices in London and New York, the Institute for Philanthropy aims to increase effective philanthropy in the UK and internationally, and conducts a highly-regarded donor education program in strategic philanthropy for high net worth individuals, called The Philanthropy Workshop (originally established by the Rockefeller Foundation in 1995). Working in a confidential environment with a select group of peers, participants explore the not for profit sector in depth, acquiring the skills, knowledge and networks to engage in strategic philanthropy and maximise the impact of giving.

Participants gain first-hand

experience of the problems of the developing world, and in a series of debates and seminars 43

Ibid. Meeting with Jim Bildner, Senior Research Fellow, Hauser Center for Nonprofit Organisations at Harvard University. 45 Institute for Philanthropy Website. “About Us – Our Vision: A Global Network.” Accessed August 20, 2011. http://www.instituteforphilanthropy.org/content/Vision-Global-Network 44

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are taught to think strategically; to look at the root causes of problems rather than the symptoms; to seek out opportunities for action that are not already being served and to leverage their giving so it has benefits far beyond its initial cash value.

The Institute for Philanthropy believes that in the UK, Canada, and Australia engagement with philanthropy is a cultural phenomenon and we need to unlock propensity to give – people just need to be asked, and educated on what, how and why.

Cultivating donors All fundraising professionals agreed that cultivating individual relationships over time is vital, as is honouring and celebrating philanthropy with awards presentations. The question of how to cultivate a changing donor base confronts even the most prestigious arts organisations. As audiences and donors shift toward younger, tech-savvy generations with different tastes and priorities, less disposable income, and more choice in their leisure spending, arts organisations such as the Tate have established young patrons groups. The Institute for Philanthropy conducts „Next Generation Philanthropy‟, a program in strategic philanthropy for 18-30 year olds wishing to deepen engagement in their personal, family or corporate philanthropy. Business for the Arts in Canada aims to engage and strengthen the next generation of business leaders through their artsScene program – a network of leading young business professionals who support the arts through volunteering and patronage – now in eight cities across Canada.

Meeting with Dr. Salvatore LaSpada, Chief Executive, and Sarah Burton, Deputy Director, Institute for Philanthropy. 47 Ibid.

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5. Utilising New Technology Another way to engage aspiring or next generation supporters is through crowd funding arts projects. The Institute for Philanthropy in the UK predicts that in the future online and social network giving will grow and, in a seemingly contradictory move parallel to that, the experiential economy will also grow - the desire on the part of people for real, in person connection.

Crowd funding is growing as a way of supporting community projects. A dedicated website provides information on a number of projects, the aims and objectives, how the projects will work, and project budgets. Once meeting certain checks, anyone who believes they have a good idea for a project can post a proposal and anyone can pledge money to support the project via the website. This tool allows project creators to reach out to their audiences and supporters for funding and bring together a large numbers of small contributions. Only projects that raise enough financial support proceed.

While there are many examples of crowd funding overseas, it is still in its infancy in Australia, as there are unresolved issues regarding compliance with Australian consumer protection laws and regulations. Despite this, Australia‟s first crowd funding platform developed for creative individuals and organisations, Pozible, was launched over a year ago, and many projects have realised their funding aspirations via its site (for a 5-7.5% commission).

5 (a) Case Study: Fund it crowd funding Fund it is Ireland‟s new crowd funding website, managed by Business to Arts Ireland, and designed to support greater individual giving to the creative sector. Business to Arts Ireland took three months before they launched to identify influencers and connectors in each field and explain to them how Fund it would work. They then coached and hand-picked six great projects to start with. These projects had already established networks, as knowing who your first supporters will be and knowing who will spread the word effectively is very important at the start of any crowd funding campaign. Many artists and arts organisations have Facebook fans and crowd funding is a way to leverage that awareness.

The approach serves to strengthen the bond between a creator and their audience which offers the potential for wider-ranging, long-term relationships.

Business to Arts explains that „Ireland is a small market and Fund it received a lot of media 53

coverage – it was the right time for it.‟ Business to Arts received a government grant and funding from a foundation to build Fund it and provide the service to the sector. Their advice

Institute for Philanthropy, 2010. “Our First Decade: 2000 to 2010.” page 74. Madden, Christopher. March 31, 2011. “Crowdsourcing Government Arts Funding.” Accessed September 18, 2011. http://artspolicies.org/2011/03/31/crowdsourcing-government-arts-funding/ 50 Chandler, Natalie. June 6, 2011. “Will crowd-funding save the Australian arts industry? Anything‟s Pozible…” Accessed September 10, 2011. http://anthillonline.com/will-crowd-funding-save-the-australian-arts-industryanythings-pozible/ 51 Meeting with Stuart McLaughlin, Chief Executive, Rowena Neville, Director of Marketing and PR, and Andrew Hetherington, Project Director, Business to Arts, Ireland. 52 Fund It Website. Accessed August 21, 2011. http://www.fundit.ie/info/about/ 53 Meeting with Business to Arts, Ireland. 49

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to others considering establishing a similar project is to ensure they have the adequate resources to effectively manage a crowd funding website. „We take a 5% commission and that doesn‟t cover costs.‟

5 (b) Case Study: DonorsChoose.org crowd funding DonorsChoose.org is an online not for profit organisation connecting donors to schools in need across America. Started 11 years ago, it is a pioneering example of the crowd funding model of „citizen philanthropy‟ in a quality controlled environment, with innovations which may be applied in the arts sector. Their mission is to engage the public in public schools by giving people a simple, accountable and personal way to address educational inequity and donate money to provide the tools and experiences for an excellent education. 55 Project requests on DonorsChoose.org range from a teacher requesting bean bags to create a reading area, to violins for a school recital, to equipment for a science class. The average DonorsChoose.org project requires funding of $500 and the success rate for a project to be fully funded is 63%.Vetting of projects to go online is outsourced to other school teachers who have already been successful in the DonorsChoose.org process. Donors who contribute $100 or more to a project, or who complete the funding for a project, receive a „thank-you package‟ of handwritten or painted thank-you notes from students, photos of the project, and a letter from the teacher. Since 2006, DonorsChoose.org and retail home wares chain Crate and Barrel have developed an award-winning partnership where Crate and Barrel customers used 1.1 million co-branded gift cards to support over 347,000 students.56 By utilising consumer spending power and corporate marketing budgets to serve a good cause, the partnership was more effective than a simple donation. Crate and Barrel had been working on marketing strategies aimed at engaging and deepening relationships with customers, while reinforcing their commitment to the community. The unique partnership with DonorsChoose.org helped accomplish these goals as customers were directly involved in the giving process by choosing how their corporate dollars were spent. “Crate and Barrel worked to find „quantitative metrics‟ around customer loyalty, brand equity and sales increases, and results showed that the partnership significantly increased both brand perception and customer spending.”57 DonorsChoose.org noted a multiplier effect with the $25 gift card recipients. After donating once using their gift card, they often „fell in love with the organisation‟ and supported other programs. As one of the leaders in this area, DonorsChoose.org has evolved to include a number of buttons on the website that enhance the crowd funding process: Double your impact. (If the project reaches 50% funding, then a partner will make up the difference.)

Ibid. DonorsChoose.org Website. “How it works.” Accessed August 17, 2011. http://www.DonorsChoose.org/about 56 Committee Encouraging Corporate Philanthropy Website. “Directors Award: DonorsChoose.org” Accessed August 17, 2011. http://www.corporatephilanthropy.org/events/excellence-awards/winners/1087-directors-award.html 57 Ibid. 55

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Almost Home. (When a project reaches 98% funding, DonorsChoose.org will fund the rest.) In addition, corporate partners can select projects from the DonorsChoose.org website and feature them on their own website. For example, SONIC fast food customers vote to tell them which DonorsChoose.org projects to fund.

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6. Cultural Entrepreneurship There is a sense in the UK that arts sponsorship is static; in that it is the same few companies giving money to a limited group of arts organisations. It is estimated that 70% of partnership support is going to a core group of flagship London arts organisations.

At the same time

there are small arts organisations employing business development staff who cost more to employ than they generate in partnership income. Increasingly, arts organisations in the UK are exploring innovative business models and income generation strategies. The arts can solve strategic and operational challenges of businesses - the real issue is communicating the value of the arts to them, helping business to understand the creativity of art and providing evidence that this is good for business. Arts & Business in the UK has commissioned a number of ground-breaking research papers around this theme. 59

In Beyond Experience: culture, consumer and brand , Arts & Business investigates how people‟s experience of culture is changing and how business can use this to form new relationships with their customers. The report explores the changing nature of ever more demanding and culture-literate consumers, and their ensuing desire for authentic experiences and meaningful transformations. „Authenticity‟ is defined as a consumer sensibility of purchasing on the basis of conforming to self-image, as opposed to product performance and price. What consumers buy now reflects who they are and what they aspire to be in relation to how they perceive the world, with judgements of „real‟ or „fake‟ hanging in the balance.

According to this UK research, consumers are increasingly looking for meaningful experiences to transform their lives, and businesses can best offer these through the use of the arts by engaging their customers in creative and innovative ways. Technology is challenging the previously passive role of consumers, inviting them to interact and contribute to the development of a product using cultural and artistic activities, while simultaneously transforming themselves through the consumption of that product.

What

consumers now value most about a product is its ability to bring about an internal change or transformation. The arts can help business to develop brand loyalty through unique experiences. One example of this is Nokia‟s „Secret Cinema‟ initiative, where movie enthusiasts gather monthly to see a surprise movie in an unknown location after receiving instructions via text message on their mobile phone on the day of the event.

Arts & Business have commissioned extensive research by Professor Giovanni Schiuma to examine „Arts-Based Initiatives‟, entrepreneurial approaches for arts organisations to generate income and develop reciprocal relationships with the corporate sector.

These

Meeting with Simon Cronshaw, Co-founder, and Peter Tullin, Co-founder, CultureLabel. Arts & Business, 2009. “Beyond Experience: culture, consumer and brand.” Gilmore, James H; Pine II, B.Joseph; Mermiri, Tina Ed. 2009. “Using art to render authenticity in business.” In Beyond Experience: culture, consumer and brand, Arts & Business. p16. 61 Mermiri, Tina. 2009. “The Transformation Economy.” In Beyond Experience: culture, consumer and brand, Arts & Business. p103. 62 Ibid. p96. 63 Schiuma, Giovanni. 2009. “The Value of Arts-Based Initiatives: Mapping Arts-Based Initiatives” Arts & Business. Accessed August 17, 2011. http://artsandbusiness.org.uk/media%20library/Files/Research/Mapping%20ABIs%20%20Prof%20SchiumaFINAL-1.pdf 59 60

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approaches represent a shift from casual sponsorships supporting the arts to utilising the expertise and assets of the arts to benefit business and for commercial gain. Challenges currently facing business include team building, talent development and retention, leadership and organisational change. Arts organisations may have a range of products, skills or services that could be of benefit to business, and deliver change in an inspirational and cost effective way. Some of these products and services the arts could sell to business include: training and personal development techniques, experiential learning techniques and using the artistic process to inform products. From Professor Schiuma‟s research, Arts & Business has developed a matrix of possibilities from entertainment through to transformation to help arts organisations develop and position their offer in a commercially-focused and compelling way.

Some key steps to starting entrepreneurial activities or arts-based initiatives include: A competency based audit to identify unique skills and assets that are potentially saleable Ensuring the right resources, staffing and planning processes are in place Bridging the gap and translating artistic resources to a business context Market testing products with potential clients Building wide networks

Arts-Based Initiatives can offer business other ways of engaging with the arts and make existing partnerships work harder for the business.

6 (a) Case Study: CultureLabel CultureLabel is both a dotcom and a consultancy based in London that provides a unique perspective on sustainable income generation for the not for profit arts sector.

The CultureLabel directors, Simon Cronshaw and Peter Tullin, have experience in both arts and commercial environments, and practical experience as cultural entrepreneurs. Their book, Intelligent Naivety: Commercial Opportunities for Museums & Culture Institutions, is a hands-on guide for encouraging cultural entrepreneurship in museums of all sizes, creating new income and new audiences.

Simon and Peter aim to provide a nexus between the arts

and consumer culture, without devaluing either. They believe arts organisations can create new commercial income on the strength of what they already possess - great content, great 64

Arts & Business. “Entrepreneurial approach to generating income.” Accessed August 17, 2011. http://artsandbusiness.org.uk/Media%20library/Files/Research/Entrepreneurial%20approach%20to%20generating%2 0income.pdf 65 South, Joanne. “The Value of Arts-Based Initiatives: How to combat the recession.” Arts & Business. Accessed May 2, 2011. http://artsandbusiness.org.uk/Media%20library/Files/Research/Mapping%20ABIs%20in%20a%20recessionFINALv3. pdf 66 CultureLabel Website. “Cultural Policy.” Accessed August 20, 2011. http://www.culturelabel.com/agency/services/policy/ 67 Cronshaw, Simon and Tullin, Peter. (n.d.) “Intelligent Naivety: Commercial Opportunities for Museums & Culture Institutions.”

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experiences and great brands. The directors outlined the principles of CultureLabel: 1. A „gallery without walls‟ concept of audience development. Technology is transforming distribution channels, so take the content to where people are and include it in their everyday activities, such as shopping. 2. Culture and business are better together. The connections are already happening. Let‟s do it better and be business savvy in our approach, developing commercial strategies for the arts that put the customer at the heart of the services they provide. 3. Explore new business models without waiting for public funding. Test ideas in the marketplace, scale your implementation, if it works go ahead, if not forget it. Use free or low cost technology and see if people respond: that is, take a proactive and entrepreneurial way of doing things.

CultureLabel.com sells a curated selection of products and art from over 400 leading museums, galleries, designers, artists and arts organisations from around the world. Partners include Tate, V&A, British Museum, and Saatchi Gallery and a selection of boutique galleries. The idea is that all arts organisations are commercialising to some degree with retail shops, now technology can enhance the experience, and CultureLabel provides an aggregated, targeted platform to do so. The website has opened up new audiences for these institutions, turning consumers into arts patrons by making the buying of art more accessible through an online retail environment. CultureLabel recognises the cross-over between shopping and art, popular and high culture, and that consumers are increasingly discerning and seeking authenticity and products with meaning. CultureLabel works with museums, galleries and arts organisations to help them adopt new technologies and realise new income streams. They assist clients to develop and market-test new ideas, and grow projects into sustainable enterprises. The „digital museum‟ is part of the consultancy service, offering e-publishing solutions, e-ticketing, e-commerce and mobile apps to print on demand. Another strand of the consultancy works with business brands and PR agencies to help them understand more about authenticity and the arts and culture, not the other way around. Sony is one brand to produce its own culture content through a process of co-creation with arts partners.

Sony and immersive theatre pioneers, Punchdrunk,

collaborated to test the relationship between theatre and videos games using the Playstation platform: the objective was to create new experiences that appealed to the audiences of both genres.

Meeting with Simon Cronshaw, Co-founder, and Peter Tullin, Co-founder, CultureLabel. Cronshaw, Simon and Tullin, Peter. Op cit.

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7. Future directions in funding Globally the options for giving to not for profit organisations continue to expand. There is growing interest in how capital can be applied in the not for profit sector to drive increased social returns. Hot topics include venture philanthropy, philanthrocapitalism, social enterprises, impact investment, and effective philanthropy focussing on impact, innovation and evaluation. Social Enterprises While there is no universally accepted definition, social enterprises can be defined as conventional business models that deliver social returns with the profit or surplus usually reinvested to fulfil their mission. Social enterprises assist communities by creating innovative and cost effective solutions to public services and complex social and environmental problems (for example, using a business model to address homelessness). According to Professor Paul Flatau from the Centre for Social Impact at the University of Western Australia Business School, the key to a successful social enterprise is partnership between key stakeholders: (1) the social enterprise itself with social entrepreneurs driving early development; (2) for-profit business financiers; and (3) not for profit community service organisations which aim to achieve positive outcomes for those in need.

Governments can assist by providing seed funding and they can fund intermediaries to provide loan funds and business support. The real opportunity lies in government personnel, social sector representatives and market intermediaries working together to develop frameworks that track, measure and report on social and financial returns. There have been recent calls for the establishment of a social capital market in Australia that would include the development of debt and equity instruments that focus on growing the sustainability and impact of the not for profit sector. Social/Impact Investment Impact investment is any investment that generates a combination of financial and social return for investors, where the intent of the investment is primarily for a social purpose.

Research and experience in impact investment is evident in the US and UK over the past decade. While there has been a small micro finance industry in Australia, impact investment is still an emerging area here. Establishing and developing a new asset class is challenging. Some of the considerations for Australia include developing the capacity of not for profit organisations to develop „investable propositions‟ to financiers, and to use specialised intermediaries to bring the not for profit and finance sectors together. 70

Flatau, Paul. 2011. “Social Enterprise and Innovation in Australia.” The Centre for Social Impact Blog. September 9, 2011. Accessed September 17, 2011. https://secure.csi.edu.au/site/Home/Blog.aspx?defaultblog=https%3a%2f%2fblog.csi.edu.au%2f2011%2f09%2fsocial -enterprise-and-innovation-in-australia%2f 71 Thorn ,Chris. 2011. “„Impact Investment‟: driving the future of the non-profit sector.” March 28, 2011. The Centre for Social Impact Blog. Accessed May 4, 2011. http://www.csi.edu.au/site/Home/Blog.aspx

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Two categories of social/impact investment include Social Enterprise Funds and Social Impact Bonds. Social Enterprise Funds On 9 August 2011, the Australian Government announced a new Social Enterprise Development Investment Fund (SEDIF) to improve access to finance and support for Australia‟s social enterprises. The aim is to help social enterprises grow their business and increase the impact of their work in their communities. By establishing SEDIF, the Australian Government is also seeking to catalyse the development of the broader social impact investment market in Australia.

The funds provide loans and a range of tailored financial

products rather than grants to support social enterprises. Foresters Community Finance and Social Enterprise Finance Australia have been selected as the funds managers for the SEDIF. The fund managers have attracted partners and a range of corporate and individual investors to leverage the government‟s investment and further increase the pool of capital available to social enterprises. Areas of social impact to be addressed include, but are not limited to: social enterprises dedicated to services in Aboriginal communities, employment generation, community housing, land conservation, and environment protection. The aim is to help social enterprises build their capacity to manage debt and become financially sustainable over time. Social Impact Bonds The UK Government recently announced a new pilot for Social Impact Bonds (SIBs) to drive investment aimed at breaking the cycle of deprivation in underprivileged communities. An SIB restructures the relationships between government agencies, not for profit organisations and social investors. With this type of bond, a bond-issuing organisation raises capital from investors based on a contract with government to deliver improved social outcomes that generate future government costs savings. These savings are used to pay investors a reward in addition to the repayment of the principal, if the agreed outcomes are achieved.

Australia, the NSW government recently announced that it will pilot a social impact bonds program as a means of delivering social services through the private sector.

School for Social Entrepreneurs The School for Social Entrepreneurs (SSE) was established in the UK in 1997 to provide training and opportunities to enable people to use their creative and entrepreneurial abilities more fully for social benefit. SSE supports individuals to set up new charities, social enterprises and social businesses across the UK and in Australia.

DEEWR (Department of Education, Employment and Workplace Relations). “Social Innovation: SEDIF Frequently Asked Questions.” Accessed September 17, 2011. http://www.deewr.gov.au/Employment/Programs/SocialInnovation/SocialEnterprise/Pages/SEDIFFAQs.aspx 73 Hems, Les. 2011. “Social Impact Bonds: Not a Panacea But Worth Investing In.” The Centre for Social Impact Blog. 28 March 2011. Accessed September 17, 2011. http://www.asb.unsw.edu.au/learningandteaching/Documents/Centre_of_Social_Impact_Blogs.pdf 74 Shanahan, Leo. 2011. “Services to go private.” The Australian. September 7, 2011. Accessed September 29, 2011. http://www.theaustralian.com.au/national-affairs/state-politics/social-services-to-go-private/story-e6frgczx1226130927901

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SSE believes entrepreneurship is about an attitude, a mindset and a set of personal characteristics; and social entrepreneurs most effectively combine their resourcefulness, drive and innovation in the form of practical action and learning by doing. SSE has found that it is a combination of personal support and development, project knowledge and leadership skills 75

which results in the creation of effective and sustainable solutions to unmet needs.

The SSE London Graduation Celebration 2011 brochure, “Stories of Change”, includes a social entrepreneur working in cultural capital. Daniel Baker has developed an innovative education programme at Cubitt, a small gallery and studios in Islington, the seventh poorest borough in the UK. Through a model that embeds artists in the organisations and services that work with the most excluded groups, Cubitt Education brings high quality visual arts to 76

between 200 - 400 local people a week, aged from 4 to 87 years old. Cubitt Education utilises the power of visual arts to build self confidence, enable individual expression, promote intergenerational conversation, and develop crucial skills for the creative industries.

Opportunities for Social Enterprise and the Arts in Australia To date, the majority of social/impact investment in Australia has funded property projects such as leasing commercial property to nonprofits (Foresters Community Finance/Social Investment Australia); social infrastructure (the Chris O‟Brien Lifehouse, a world-class cancer treatment and research facility); and various affordable housing arrangements. The characteristics of these transactions, such as the underlying security of property and the proven income stream, „tick all the right boxes‟ from a social investment perspective as they provide both a demonstrable financial and social return. Initiatives or projects that require start-up or early stage capital to build or scale a social enterprise often do not offer such security. The market would typically expect a higher total return for this increased risk. The total return includes financial return, which is not the primary focus of most social enterprises; and social return, which at this stage is difficult to measure, compare and report. Understandably, investment capital flows to other sectors, such as the arts, have been minimal to date. The size of these transactions (often $50 million+) may also represent a barrier for the arts. However there may be scope to look at smaller transactions or a collective national approach. Those in the social sector looking to attract investment capital to fund enterprises may need to present a change in structure, positioning and culture, with the arts being no exception. The opportunity exists to investigate how a social investment framework can be utilised in the arts sector in Australia. At this stage, extensive research is required to investigate aspects of the arts that may generate income or demonstrate significant cost savings for government over time.

School for Social Entrepreneurs Website. “About the SSE.” Accessed September 10, 2011.http://www.sse.org.uk/about.php?sub=APPROACH 76 Cubitt Website. “Cubitt: Education.” Accessed September 17, 2011. http://cubittartists.org.uk/index.php?section=3 77 School for Social Entrepreneurs. 2011. “SSE London Graduation Celebration: Stories of Change.” Accessed September 10, 2011. http://www.sse.org.uk/_uploads/File/SSE%202011%20Booklet%20Final.pdf

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Jeff Melanson from Canada‟s National Ballet School imagines a „Centre for Cultural Entrepreneurship‟ bringing together students from across artistic disciplines to learn the basics of business, and a venture capital pool that brings investors together with artistic enterprises.

Timm, Jordan, Op cit.

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Conclusion This Fellowship has provided an appreciation of international approaches to stimulating private sector support for the arts. I hope this research offers insight into existing strategies and confirms why they are successful, while also suggesting opportunities for new approaches as the arts sector, and AbaF in particular, strive for continual improvement. Interestingly, as government spending is tightened, and those in the arts in Australia, Canada, the UK and Ireland look to the US for ideas on private sector support for the arts, the Hauser Center research is questioning the existing order and seeking to bring about changes in public policy and in the decisions of arts institutions and donors. In all of the countries visited, as in Australia, the potential for the future is for arts organisations to generate sustainable revenue streams through new technology and social media; innovative partnerships with business; strong relationships with strategic donors; and cultural entrepreneurship and social enterprise business models. The more capable arts organisations are at managing future income and sustainable revenue streams, the more resilient they will be. With the multifaceted issue of stimulating private sector support for the arts, there is no „silver bullet‟; persistence, confidence and skill on the part of arts managers will grow private investment in culture. I intend to share my learnings among my colleagues and key stakeholders across the arts, business and philanthropy sectors both in Queensland and nationally through AbaF‟s networks. This report will be published on AbaF‟s website and distributed to some 2,000 arts and business recipients of AbaF Queensland‟s e-news bulletin. I will take the opportunity to provide input to industry and academic forums to encourage debate about sustainable income streams and private sector support for the arts. I also look forward to continuing the dialogue and sharing my report with the international colleagues whom I met with on my travels.

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Recommendations Following is a series of recommendations, based on the above research themes, to promote private sector support for the arts in Australia and aid the sustainability of arts organisations. Extending arts advocacy Promote the intrinsic value of the arts to the wider community: elevate the role of the arts to increase support from audiences, business and government. Continue to advocate the benefits of partnering with the arts to the corporate sector with new messages that resonate strongly in the current business climate (i.e. partnering with the arts builds competitive advantage, enhances the critical thinking and creative skills of the corporate workforce, and helps to achieve staff recruitment and team building goals).

Managing business arts partnerships Encourage arts organisations to be creative in thinking about funding and diversify their income streams to ensure sustainability. Develop bespoke partnerships which respond cleverly to a corporate partner‟s specific business objectives. Conduct seminars for early-to-mid career business professionals in Business Development, Human Resources, and Marketing to build understanding of the unique benefits of partnering with the arts. Encourage the corporate sector to invite senior staff from arts organisations to serve on business boards: this serves dual aims of embedding creativity in business and broadening networks for the arts.

Smarter ways of working together Develop workshops and other learning tools for building entrepreneurial capacity in arts organisations. Embed a sales-based approach to developing business arts partnerships in training for arts managers, supported by ongoing coaching (as employed in the „New Stream‟ program of Business to Arts in Ireland). Encourage flagship arts organisations to play a leadership role in representing the interests of the broader arts community and actively seek opportunities to collaborate with smaller arts organisations to increase their capacity to secure private sector support. Expand matched funding programs (which double the contribution of a business partner) into regional Australia by working with local and/or state governments: this strategy has proven to be effective through „artsVest‟ in Canada.

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Encouraging philanthropy Continue to raise public awareness of the contribution of philanthropy to the arts in Australia, including awards programs that honour and celebrate arts philanthropy. Establish a research centre to provide high quality information about philanthropy to assist better decision making, in a similar role to the Foundation Center in the US. Educate and train wealth management advisors in the opportunities the arts may provide for their high net worth clients to cultivate cultural giving. Assist prospective donors to acquire the skills, knowledge and networks to strategically engage with the arts through education programs similar to those of the Institute for Philanthropy. Develop networks of leading young business professionals who support the arts through volunteering and patronage to cultivate the next generation of donors and business supporters. Establish a service similar to JustTextGiving in the UK that enables not for profit organisations to collect donations by text. Utilising new technology Resolve crowd funding issues regarding compliance with Australian consumer protection laws and regulations. Establish a crowd funding platform as a complement to AbaFâ&#x20AC;&#x;s Australia Cultural Fund and engage business partners to leverage the opportunity. Cultural Entrepreneurship Encourage university business schools to research arts creativity in business, furthering the research undertaken by Arts & Business UK. Encourage business to use the arts to engage their customers in creative and innovative ways and utilise arts expertise and assets to address strategic and operational challenges of business. Inform brand managers and PR agencies of the opportunities the arts and culture can offer business in regard to brand authenticity. Train a core group of business volunteers to explore commercial strategies for the arts and work with arts managers to identify and cultivate potential profit centres across the sector (the National Ballet School of Canada is leading this approach). Investigate opportunities to bring the CultureLabel.com model to Australia to open up new audiences and markets for leading Australian museums, galleries, designers, and artists.

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Future directions in funding Research aspects of the arts that may generate income or demonstrate significant cost savings for government over time. Investigate the feasibility of AbaF acting as an intermediary between the arts and investment banks to further social/impact investment for arts and culture. Scope the possibility of AbaF establishing a „Fund for the Arts‟, using the AbaF brand and networks to drive fund outcomes while engaging external fund managers to manage the investment, compliance, regulation and reporting. Impact investors could invest in the „AbaF Fund for the Arts‟ which would lend money to social enterprise arts organisations for short-term capital funding.

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References / Further Reading AbaF (Australia Business Arts Foundation) and Australia Council for the Arts. 2010. “Arts and business: partnerships that work.” AbaF (Australia Business Arts Foundation). 2011. “2011 AbaF survey of private sector support for the arts.” Accessed August 17, 2011. http://www.abaf.org.au/news-research/research/2011-abaf-survey-of-private-sector-support-for-the-arts.html Arts & Business. “Annual Review 2009/10.” Accessed August 17, 2011. http://artsandbusiness.org.uk/media%20library/Files/About_us/ArtsandBusiness_AnnualRevie w_0910-2.pdf Arts & Business. 2009. “Beyond Experience: culture, consumer and brand.” Arts & Business. “Entrepreneurial approach to generating income.” Accessed August 17, 2011. http://artsandbusiness.org.uk/Media%20library/Files/Research/Entrepreneurial%20approach %20to%20generating%20income.pdf Business for the Arts Website. “artsVest.” Accessed September 17, 2011. http://www.businessforthearts.org/programs/artsvest/ Business to Arts and Temple-Morris, Boz. (n.d.) “Conversations about Culture.” Business to Arts. 2010. “New Stream Evaluation 2009/10.” Accessed September 24, 2011. http://www.businesstoarts.ie/images/uploads/New_Stream_Review_2009-10_Year_One.pdf Canada‟s National Ballet School Website. Accessed September 3, 2011. http://www.nbsenb.ca/about/default.aspx Center for Effective Philanthropy Website. “About CEP.” Accessed September 3, 2011. http://www.effectivephilanthropy.org/index.php?page=about-cep Center for Effective Philanthropy. 2002. “Indicators of Effectiveness: Understanding and Improving Foundation Performance.” Center for Effective Philanthropy. 2011. “The State of Foundation Performance Assessment: A Survey of Foundation CEOs.” Accessed September 17, 2011. http://www.effectivephilanthropy.org/assets/pdfs/PerformanceAssessmentFinal.pdf Chandler, Natalie. June 6, 2011. “Will crowd-funding save the Australian arts industry? Anything‟s Pozible…” Accessed September 10, 2011. http://anthillonline.com/will-crowdfunding-save-the-australian-arts-industry-anythings-pozible/ City of Toronto Economic Development Committee and Toronto City Council. May, 2011. “Creative Capital Gains: An Action Plan for Toronto.” Committee Encouraging Corporate Philanthropy Website. “Directors Award: DonorsChoose.org.” Accessed August 17, 2011. http://www.corporatephilanthropy.org/events/excellence-awards/winners/1087-directorsaward.html Cronshaw, Simon and Tullin, Peter. (n.d.) “Intelligent Naivety: Commercial Opportunities for Museums & Culture Institutions.” Cubitt Website. “Cubitt: Education.” Accessed September 17, 2011. http://cubittartists.org.uk/index.php?section=3

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CultureLabel Website. “Cultural Policy.” Accessed August 20, 2011. http://www.culturelabel.com/agency/services/policy/ DEEWR (Department of Education, Employment and Workplace Relations). “Social Innovation: SEDIF Frequently Asked Questions.” Accessed September 17, 2011. http://www.deewr.gov.au/Employment/Programs/SocialInnovation/SocialEnterprise/Pages/SE DIFFAQs.aspx DonorsChoose.org Website. “How it works.” Accessed August 17, 2011. http://www.DonorsChoose.org/about Flatau, Paul. 2011. “Social Enterprise and Innovation in Australia.” The Centre for Social Impact Blog. September 9, 2011. Accessed September 17, 2011. https://secure.csi.edu.au/site/Home/Blog.aspx?defaultblog=https%3a%2f%2fblog.csi.edu.au %2f2011%2f09%2fsocial-enterprise-and-innovation-in-australia%2f For Impact Website. Accessed September 17, 2011. http://www.forimpact.org/ Fund It Website. Accessed August 21, 2011. http://www.fundit.ie/info/about/ Getty Website. “About the Getty and Pacific Standard Time.” Accessed September 10, 2011. http://www.getty.edu/pacificstandardtime/about/ Gilmore, James H; Pine II, B.Joseph; Mermiri, Tina Ed. 2009. “Using art to render authenticity in business.” In Beyond Experience: culture, consumer and brand, Arts & Business. p16. Grantmakers in the Arts, 2010, “Foundation Grants to Arts and Culture, 2008: A One-year Snapshot.” Grantmakers in the Arts Reader, Vol. 21, No.3 Fall 2010, p2. Harvard Kennedy School Website. “The Initiative For Sustainable Arts in America.” Accessed August 17, 2011. http://www.hks.harvard.edu/hauser/engage/artsculturemedia/forsustainable-arts-in-america/ Hems, Les. 2011. “Social Impact Bonds: Not a Panacea But Worth Investing In.” The Centre for Social Impact Blog. 28 March 2011. Accessed September 17, 2011. http://www.asb.unsw.edu.au/learningandteaching/Documents/Centre_of_Social_Impact_Blog s.pdf Institute for Philanthropy Website. “About Us – Our Vision: A Global Network.” Accessed August 20, 2011. http://www.instituteforphilanthropy.org/content/Vision-Global-Network Institute for Philanthropy, 2010. “Our First Decade: 2000 to 2010.” Lim, Terence. 2010. “Measuring the Value of Corporate Philanthropy: Social impact, business benefits and investor returns.” Committee Encouraging Corporate Philanthropy. Madden, Christopher. March 31, 2011. “Crowdsourcing Government Arts Funding.” Accessed September 18, 2011. http://artspolicies.org/2011/03/31/crowdsourcing-government-artsfunding/ Mermiri, Tina. 2009. “The Transformation Economy.” In Beyond Experience: culture, consumer and brand, Arts & Business. p103. National Endowment for the Arts. 2007. “How the United States Funds the Arts.” Accessed August 17, 2011. http://www.nea.gov/pub/how.pdf Philanthropy Australia. 2011. “Strategies for Increasing High Net Worth and Ultra High Net Worth Giving - Final Report.” Accessed September 17, 2011. http://philanthropywiki.org.au/index.php/Strategies_for_Increasing_High_Net_Worth_and_Ultr a_High_Net_Worth_Giving_-_Final_Report

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Philanthropy Ireland Website. Accessed September 17, 2011. http://philanthropy.ie/ Rand Corporation. “Reframing the Debate About the Value of the Arts.” Rand Corporation Research Brief. Accessed 16 September 2011. http://www.rand.org/pubs/research_briefs/RB9106/index1.html Schiuma, Giovanni. 2009. “The Value of Arts-Based Initiatives: Mapping Arts-Based Initiatives” Arts & Business. Accessed August 17, 2011. http://artsandbusiness.org.uk/media%20library/Files/Research/Mapping%20ABIs%20%20Prof%20SchiumaFINAL-1.pdf School for Social Entrepreneurs Website. “About the SSE.” Accessed September 10, 2011.http://www.sse.org.uk/about.php?sub=APPROACH School for Social Entrepreneurs. 2011. “SSE London Graduation Celebration: Stories of Change.” Accessed September 10, 2011. http://www.sse.org.uk/_uploads/File/SSE%202011%20Booklet%20Final.pdf Shanahan, Leo. 2011. “Services to go private.” The Australian. September 7, 2011. Accessed September 29, 2011. http://www.theaustralian.com.au/national-affairs/statepolitics/social-services-to-go-private/story-e6frgczx-1226130927901 South, Joanne. “The Value of Arts-Based Initiatives: How to combat the recession.” Arts & Business. Accessed May 2, 2011. http://artsandbusiness.org.uk/Media%20library/Files/Research/Mapping%20ABIs%20in%20a %20recessionFINALv3.pdf Suddes, Tom. 2007. “You‟re in Sales…Get Over It.” March 14, 2007. Accessed September 24, 2011. http://www.forimpact.org/2007/03/you_are_in_sales_get_over_it.php?from=side Tate. “Tate and Vodafone begin new partnership by launching Tate Debates”, Press release, 25 July 2011. http://www.tate.org.uk/about/pressoffice/pressreleases/2011/24455.htm Tate Website. Accessed September 10, 2011. http://www.tate.org.uk/about/ourpriorities/ The Associated Press. 2010. “Arts industry faces slump after big growth.” January 20, 2010. Accessed September 12, 2011. http://today.msnbc.msn.com/id/34952620/ns/todayentertainment/t/arts-industry-faces-slump-after-big-growth/ Thorn, Chris. 2011. “„Impact Investment‟: driving the future of the non-profit sector.” March 28, 2011. The Centre for Social Impact Blog. Accessed May 4, 2011. http://www.csi.edu.au/site/Home/Blog.aspx Timm, Jordan. April 7, 2011. “Arts Dance for Your Dinner” CanadianBusiness.com. Accessed May 6, 2011. http://www.canadianbusiness.com/article/17057--arts-dance-for-your-dinner Vodafone UK Website. Accessed September 17, 2011. http://www.vodafone.co.uk/vodafoneuk/about-us/just-text-giving/just-text-giving-for-charities/

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Appendix 1 About the Australia Business Arts Foundation (AbaF) AbaF connects the arts, business and donors. It is a national organisation, funded by the Commonwealth through the Office for the Arts, Department of the Prime Minister and Cabinet and state and territory governments. AbaF works with businesses large and small, not-forprofit arts organisations of all types, individual artists, trusts and foundations. In 2010, AbaF celebrated ten years as Australia‟s peak organisation for the promotion of private support for the arts. During this period the value of private support for the arts in Australia more than doubled – from $108 million in 2001 to $221 million in 2010. AbaF has changed the culture for business support for the arts, and built the capacity of the arts to engage successfully with business. AbaF utilises a number of strategies to achieve its objective: works with a council of senior business leaders to advocate the benefits of business relationships with the arts helps businesses to maximise the value of their sponsorships and partnerships with the arts develops the capacity of arts managers, arts organisations and artists to attract and use private sector resources for revenue, governance and management matches and delivers free business expertise to the arts through AbaF‟s Woodside Better Business volunteering program (which includes adviceBank and boardBank) hosts events to enable arts and business people to connect and network honours and celebrates best practice and leadership in business arts relationships through the AbaF Awards stimulates connections between small and medium businesses and arts organisations through Premier‟s Arts Partnership Funds in SA, Tasmania and WA (matched funding which effectively doubles the contribution of the business partner). facilitates tax deductible donations to the arts through the Australia Cultural Fund conducts research and shares information on opportunities and trends in private support for the arts in Australia and internationally.

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